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Gujarat: Rising fuel prices can hurt auto sales, say mkt experts

Opposition Congress party conducted rallies in the city to oppose the hike in the price of fuel, urging the central government to reduce the burden

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Congress workers protest against petrol price rise on Thursday
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If the prices of petrol and diesel continue to rise beyond the existing level and continue to be high on a prolonged basis, the sales of automobiles in the country could be affected, said a senior official of a leading carmaker.

"So far, there is not much impact of the hike in fuel prices on the sales of automobiles in the country. However, its high prices continue for a longer time, auto sale can be affected," said Rajesh Goel, senior VP and director, sales and marketing for Honda Cars India on the sidelines of the launch of the new edition of compact sedan Amaze.

He said that the government must also be concerned about the rise in fuel prices and so there are hopes that prices may come down in days to come. He, however, stated that the fuel price is something that pinches the buyer on day to day basis and has a significant share in monthly expenses of households.

Harshal Desai, senior VP of Landmark Honda, one of the dealers for Honda cars in the city also said that till now the sales of automobiles is immune from the rise in the price of petrol and diesel. He hoped that the prices will moderate, as it would not be advisable for the central government to allow prices of fuel to go through the roof in an election year.

In Ahmedabad market, petrol costs about Rs76 per litre, while diesel costs upwards of Rs73 per litre. Both the fuel have become dearer by about Rs2.5 per litre in just ten days. Opposition Congress party conducted rallies in the city to oppose the hike in the price of fuel, urging the central government to reduce the burden.

Even truckers have complained that rising prices of fuel has disrupted the costing of the transport sector in the country. "It is difficult to enter into contracts as by the time delivery takes place, the fuel prices have risen. This is causing conflict between transporters and their clients," said Hiten Vasant, former national vice president of All India Motor Transport Congress. Truckers also told DNA that cost of transport has increased and it is getting increasingly unviable to go for one-way trips.

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